Down, but not out, this heavily sold-off ASX share just partially rewarded patient stockholders who've been holding on with hopes for a turnaround.

Whether that turnaround is sustainable remains to be seen.

But in midday trade today, beaten-down ASX share City Chic Collective Ltd (ASX: CCX) is shooting the lights out.

Shares in the plus-size women's clothing retail stock closed yesterday trading for 9.6 cents. At the time of writing, shares are swapping hands for 11.5 cents apiece, up a whopping 19.8%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.26% at this same time.

As you can see in the chart above, despite today's big lift, the ASX stock remains down a painful 73.9% since this time last year.

Here's what's driving the big turnaround today.

ASX share skyrockets on positive earnings growth

Investors are bidding up the ASX small-cap stock after City Chic released an unaudited H1 FY 2025 trading update covering the six months to 29 December.

The retailer reported half-year global sales revenue of $69.5 million. That's down 3.6% from H1 FY 2024, pulled down by a 22.4% decline in its Americas business.

But in a promising trend, City Chic reported that total global sales in the final six weeks of the half year were up 3.2% from the prior corresponding period. This was driven by a 9.0% boost from its Australia/New Zealand business.

Also likely driving interest in the stock today is the positive turn for the company's earnings. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) are expected to come in between $3 million and $4 million for the half, up from an earnings loss of $4.4 million in H1 FY 2024.

And the company achieved ongoing trading margin improvements in all its operational regions, reporting 8.5% year-on-year gross margin growth.

On the balance sheet, Citi Chic reported it held a net cash position of $12.0 million as at 29 December. The retailer also had inventory valued at $32.1 million.

What did management say?

Commenting on the half-year results sending the ASX share soaring today, City Chic CEO Phil Ryan said:

We are very pleased with the turnaround in the Group's earnings, with the continued business moving from a loss of $4.4 million in the first half last year, to an expected EBITDA of between $3.0 million to $4.0 million in the current period.

This outcome reflects a combination of the recovery in the ANZ business, improved trading gross margins and the significant cost savings achieved, with further cost savings to be realised in the second half.

Turning to the US business, Ryan noted, "While US online performed largely in line with last year, the improvement in the US Partner business fell short of our expectations."

He added, "However, the 25% growth in City Chic branded products through our websites and partners at materially higher gross margins highlights the opportunity for our brand in the market."

The rebounding ASX share is scheduled to release its complete audited 1H FY 2025 results on 27 February.